Question

Pls help in accounting

Answer 1

Based on the given transactions in July, the journal entry to record the payment of rent on July 31st is:

Date                  Account Title                                      Debit            Credit

July 31st            Rent expense                                 $3,000

                         Prepaid Expenses - Rent expense                         $3,000

How to write the journal entry for prepaid expenses?

Accounting uses the accrual basis which means that expenses are only recognized when they have been incurred and not when they are paid for. If you paid $40,000 for rent and yet your monthly rent is $5,000, only the $5,000 will be recognized as rental expense. The rest of the money is treated as a prepaid expense.

When another month elapses, then the other amount of rent can be recognized as is the case here. The month ended on July 31st and there was a need to record rental expense and so it was recorded at the rent expense of $3,000.

The journal entry would therefore show Rent Expense account is debited and the Prepaid Expenses account is credited to show it is reducing.

Full question is:

Record the journal entry to represent the payment of rent.

Find out more on prepaid expenses at brainly.com/question/27961230

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